scarcity has nothing to do with it, insurers aren’t directly responsible for allocating resources, only cash, which is a social construct. If our government put ethics first, then every person would have housing, food, and health care, and cost would never matter, because both cash and value are arbitrary. Workers need to be compensated for the labor to provide these services, but them acting as a for profit entity ensures that the “value” of the product is inflated, which is bullshit because no human should be denied something like water even if they are destitute.
A post-scarcity society would make this current hierarchy of capital much, much easier to render obsolete (the rich sure as fuck aren’t going to let it go without a fight), but even in our scarcity-real world there is an outrageous amount of resources not distributed even remotely equally (and hey, maybe we don’t start by distributing perfectly equally, but there’es enough that a majority of humanity has no reason to be destitute).
but it is good to know that this is some sort of regulation that ensures insurance companies are doing their job (although I am highly skeptical it is fairly enforced)
